7 Dividend-Capture Ideas Using an Option Hedge

   Yield: 2.27%
   Dividend Amount: 26 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.97

Strategy: Buy Eastman Chemical stock and sell the June $35.00 strike or lower call for 75 cents over the intrinsic value. I will attempt to close out the trade with a gain of near 32 cents, plus dividend.

   XL Group (XL)

 XL Group, through its subsidiaries, provides insurance and reinsurance.

   Yield: 2.16%
   Dividend Amount: 11 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 2.43

Strategy: Buy XL Group stock and sell the June $20.00 strike or lower call for 60 cents over the intrinsic value. I will attempt to close out the trade with a gain of near 26 cents, plus dividend.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 60 cents. The most I can make is 71 cents if I hold the covered call through option expiration day and the stock gets called away.

Comerica(CMA)

 Comerica, through its subsidiaries, provides financial products and services.

   Yield: 2.04%
   Dividend Amount: 15 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.21

Strategy: Buy Comerica stock and sell the June $29.00 strike or lower call for 79 cents over the intrinsic value.

After qualifying for the dividend, I will attempt to close out the trade with a gain of near 23 cents, plus dividend.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 79 cents. The most I can make is 94 cents if I hold the covered call through option expiration day and the stock gets called away.

   Motorola Solutions (MSI)

 Motorola Solutions provides communication infrastructure, devices, software and services.

   Yield: 1.84%
   Dividend Amount: 22 cents
   Ex-Dividend Date: June 13, 2012
   Beta: 1.63